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Malaysia Property Rent Yields In World Top 10

July 7, 2009Article by Ray Withers

Despite the problems of recession and property markets, the good news for Kuala Lumpur property is still listed as one of the top 10 places in the world for rental yields.In the latest 2009 figures – that go up to March 31 – the rental yield for the Malaysian capital is 9.22% and taking 9th place in the Global Rental Guide listings.

Top is tiny Moldova – nestling between Romania and the Ukraine – with a yield exceeding 14%.  Five other countries come in with double figure yields.Two other Asians rank at 3 and 4: Jakarta, Indonesia at 211.27% and Manila, The Philippines at 10.99% respectively.The UK ranks 69th with a 4.12% average yield.

Rental yield mean is the gross annual rental income expressed as a percentage of the property purchase price. This is what a landlord can expect as return to his investment.
The rental yield is one useful yardstick of whether property is over-valued or under-valued.The Malaysia property market is expecting a huge boost over the next year or so as the government announces a number of huge public funded infrastructure projects to stimulate the economy.Political opinion in Malaysia is that the government has to go public with the projects soon or the economy won’t have time to recover for the next election.

Not only will the infrastructure projects – which include railway, transport and public buildings – kick start employment, but they are also likely to push up property prices in previously less accessible areas while still making the capital a popular residential centre.Despite the top rental yields, Kuala Lumpur only scrapes in the world’s top 100  most expensive property markets at 99 – with a an average price of US$1.347 per square metre for residential property.

Top of the table is Monaco at almost US$50,000 per square metre. London is third at US$20546 per square metre.Strangely, Monaco falls outside the top 100 countries for rental yields.
International property consultants Property Frontiers offer two apartment development choices in Kuala Lumpur:

Axis Pandan

Axis Pandan, is two towers –

* Axis Residence Deluxe Kuala Lumpur , a 33-storey serviced apartment block including pools, gym and a sky lounge

* Axis Crown Premier, Kuala Lumpur offers luxury life-style living in a prime location with fantastic views over the city centre and the Royal Selangor golf club.
The street levels of the blocks house the region’s largest shopping mall.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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